Corporation is considering the purchase of equipment costing

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A corporation is considering the purchase of new equipment costing $80,000. The projected annual cash inflow from the purchase of the machine is $4,000 per year and the projected annual cash inflow is $8,000 per year. The equipment has a useful life of 4 yeats with a $20,000 salvage value. What is the accounting rate of return for the equipment purchase?

Reference no: EM131217750

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